88 Energy in a consolidation phase

88 Energy stock (LSE:88E) is in a consolidation phase and it is possible to continue in that phase until there is a breakout in the market. When the breakout happens, it would most likely favor bulls as it is explained below.

Price is currently hovering between the upper and lower Trendlines, while the RSI period 14 is above the level 50 (a bullish signal). The recent historical data shows a base, which would propel the market upwards when volatility arises.

As soon as it goes upwards, moving above the upper Trendline, 88 Energy would reach the distribution territories at 2.0, 3.0 and 4.0 within the next several months. By then, the RSI period 14 would have gone back into the overbought region.

 

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